Posted on 12 September 2016 by
29 year old London lawyer, Harry Jefferies has bought his first property in the capital thanks to the London Help to Buy initiative, Barclays and mortgage advice from independent broker, John Charcol.
Harry approached John Charcol after the London Help to Buy initiative was launched at the start of February. After reviewing his circumstances, his John Charcol consultant, Cathy Izzard, recommended Barclays for his mortgage.
Harry has now purchased a new build one bed property in Peckham for £430,000, using a deposit of £21,500 and a 40 per cent loan from London Help to Buy. He will pay a monthly mortgage repayment alongside a nominal fee of £1 a month for 60 months on the Help to Buy equity loan.
Harry said: “Without the deposit from Help to Buy, buying this flat would have been impossible. The difference it makes to my affordability in the eyes of my lender and my monthly repayments is huge.
“Not having to save such a large deposit means I now own a great property in an area that I love. It’s my first step onto the London property ladder so I’m delighted.”
Ray Boulger, Senior Technical Manager at John Charcol said: “The scheme is starting to make a difference to young professionals who would be able to afford a mortgage, were it not for London’s unique property market. This client is exactly the sort of first time buyer the London Help to Buy was set up to help. He can clearly afford the monthly repayments and had saved a decent deposit on the purchase price, so it makes sense to all parties for the deal to be done.
“Stamp Duty is likely to continue to be the barrier for some, as there is no getting past it at the moment. For take-up to be wider and for the initiative to help more young people the government might want to consider a measure to reduce this burden to further help first time buyers.”
Tony Fullbrook, Head of Mortgage Purchases for Barclays, said “The gap between income and house prices is at its widest in London, which is why Barclays is committed to supporting the new London Help to Buy initiative and providing other innovative ways to help even more people to afford a home in the capital. With our New Build mortgage range and the variety of First Time Buyer products, we can now offer mortgages to suit the individual needs of Londoners that will not only enable them to get the keys to their dream new home but to ensure it best meets their financial needs”.
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